Tether Holdings Limited, the entity behind the popular stablecoin Tether (USDT), has reported an unprecedented net profit of $2.85 billion in the last quarter of 2023. The remarkable financial performance is attributed to robust earnings from U.S. Treasury securities and a strong showing from other assets. This financial milestone cements Tether’s position as a major player in the cryptocurrency space.
Tether’s Profit Breakdown and Employee Analysis
According to Tether’s attestation report on January 31, the company’s net profit in Q4 2023 includes an impressive $1 billion in net interest from U.S. Treasury securities. Reserves in Gold and Bitcoin contribute the remaining balance. An analysis by Zippia reveals that Tether, with a workforce of 125 people, achieved a net profit per employee of $22.8 million during the last quarter. This data underscores the efficiency and profitability of the company’s operations.
Diversified Asset Portfolio and Risk Mitigation
Tether’s annual disclosure reveals a total net profit of $6.2 billion for the year, with $4 billion originating from U.S. Treasury bonds and other non-crypto investments. The stablecoin issuer manages a diverse portfolio, including $80.3 billion in U.S. Treasurys, $2.8 billion in Bitcoin, $3.5 billion in gold, and $1.5 billion in venture capital investments. Since 2022, Tether strategically shifted towards backing its stablecoin with higher-quality assets, such as Treasury bills and gold reserves. By accumulating $5.4 billion in excess reserves in 2023, Tether successfully addressed concerns about portfolio risk, covering the outstanding $4.8 billion in secured loans.
Tether emerges as a standout performer in the crypto industry, navigating challenges and consolidating its market share during the last crypto winter. The company’s commitment to transparency is highlighted by BDO Global’s review of Tether’s financials. With more than 70% of all stablecoins in circulation represented by USDT tokens, Tether’s influence in the crypto market is significant. Additionally, the collaboration with the U.S. Federal Bureau of Investigation underscores Tether’s dedication to regulatory compliance and efforts to combat illegal activities. As Tether continues to evolve, its financial achievements and strategic moves position it as a key player shaping the future of stablecoins in the crypto ecosystem.